Federal Court Orders Bitcoin Exchange to Report Users to IRS

At this point, nearly everyone has at least heard of Bitcoin. The intangible cryptocurrency has been making headlines recently for reaching an all-time high, soaring to over $11,000 per Bitcoin.

However, a recent decision out of the Federal District Court for the Northern District of California may have some crypto-investors concerned, as the IRS wants to get to know Bitcoin users in a way they're likely not going to like, and the court is giving the federal agency the go ahead. The Bitcoin exchange service, Coinbase, was just ordered to identify to the IRS the 14,000 plus users who have exchanged $20,000 or more worth of Bitcoin per year for 2014 and 2015.

While Coinbase, the Bitcoin exchange company that facilitates transactions, has touted the court's order as a partial victory, from their statement, it appears that the company is seriously considering if an appeal is in any way possible at this point. However, it seems likely that many of Coinbase's biggest users will be named, and, if the IRS can, taxed.